The Volvo factory in Charleston, South Carolina, is set to ramp up its production capacity this year. Previously responsible for manufacturing the S60 sedan, the facility has transitioned to producing larger electric SUVs, including the EX90 and the closely related Polestar 3. Recently, Volvo and Polestar confirmed that Charleston will become the sole production site for the Polestar 3, which was also being assembled at a factory in Chengdu, China.
Håkan Samuelsson, CEO of Volvo Cars, stated, “The move to consolidate global Polestar 3 production in Charleston help[s] generate efficiencies for both companies, whilst also underscoring our confidence in the plant and the role it plays in our manufacturing footprint.” This decision reflects the importance of the U.S. market for Volvo, which aims to support its growth ambitions and meet both regional and export demands.
In 2025, Volvo faced a challenging year, experiencing a 7 percent decline in sales. In contrast, Polestar, which was established as an independent entity from Volvo’s performance division in 2017, reported a 34 percent increase in sales during the same period. Given these contrasting performance metrics, increasing the production of Polestar 3 vehicles in South Carolina appears to be a strategic move.
Additionally, the Charleston facility is set to begin production of the midsize electric Volvo EX60 later this year, with plans for a hybrid Volvo model expected to launch in 2030. In conjunction with the production announcement, Volvo has agreed to extend a portion of a shareholder loan to Polestar, converting part of it into Polestar shares. Polestar currently owes Volvo $661 million, due by the end of 2031, while $274 million will be converted into stock, with an additional $65 million expected in the second quarter of the year.
Polestar has also successfully raised $1 billion through three equity financing rounds since December. Michael Lohscheller, CEO of Polestar, expressed gratitude for Volvo’s ongoing support, stating, “We are grateful for the continued support from Volvo Cars in helping us to strengthen our balance sheet and reinforce our liquidity profile.” He emphasized the strong operational collaboration between the two companies, particularly in manufacturing and customer service networks.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
